Filament, a decentralized exchange operating on the Sei blockchain, has suffered a significant self-liquidation exploit.
In a statement following the attack posted on X, the platform revealed that hackers exploited its order book system, resulting in the theft of approximately $572,000.
The incident occurred between 12:00 AM and 4:00 AM UTC on April 6, during which the attackers utilized large orders and self-liquidation strategies across various accounts to manipulate prices and withdraw assets. Prior to this event, Filament had around $680,000 in user deposits.
Immediately upon discovering the breach, Filament halted all trading and withdrawals to mitigate further losses. They have initiated a comprehensive investigation, collaborating with law enforcement and blockchain security specialists to trace the stolen funds.
The attackers transferred the stolen assets through the Symbiosis Bridge and into exchanges, primarily FixedFloat. Authorities and forensic teams have been provided with wallet addresses and transaction details related to the incident to assist in the recovery efforts.
Filament has proposed a 10% bounty, roughly $57,000, to the hacker if they return the remaining funds. This offer is subject to negotiation, contingent on the attacker’s full cooperation.
Abhitej, a co-founder, shared an update on X, stating that the team is meticulously reviewing logs, cooperating with law enforcement, and formulating a strategy to return what remains to liquidity providers. A comprehensive report will be released soon, along with a process for affected users in the platform’s COMB Pool to recover some of their assets.
This exploit adds to what is shaping up to be the most devastating year for crypto hacks. According to a recent report, $1.64 billion was lost to theft in the first quarter of 2025 alone. DeFi protocols were hit hard, incurring losses of $106.8 million across 38 incidents, while centralized platforms suffered just two breaches, but with far larger financial impacts totaling $1.5 billion.
On March 26, Hyperliquid (HYPE) also experienced a significant loss of $10.63 million due to a similar self-liquidation incident. Dr. Jan Philipp Fritsche, managing director of Oak Security, recently cautioned that many DeFi platforms are vulnerable to self-liquidation exploits owing to predictable flaws in trading mechanics.